New €2.5b small business funding plan unveiled
The Cabinet wants to make it possible for entrepreneurs in the Small and Medium-sized Enterprise (SME) to be able to borrow more money to finance growth plans, according to a letter to Parliament from Minister Henk Kamp of Economic Affairs Tuesday. The Cabinet will devise a set of measures that should lead to €2.5 billion extra money, which will be available for these SME's for growth. Minister Kamp says that these businesses usually have a weak financial institutions, which means that banks do not want to take the risk of financing them. The growing economy is giving more and more chances for SMEs to grow, which they cannot take. The Cabinet's plan is to stand as guarantor for these diverse funds. The Ministry of Economic Affairs itself will stand as guarantor for €500 million to allow the financing of a fund to be established by private investors. This guarantee should stimulate private financiers to extra market financing. The department will also make an extra €100 million available for the existing fund, to encourage investors to supply their own assets for SMEs. Next to that, alternative financing initiatives will be guaranteed for €400 million.